TIDMOHGR
RNS Number : 6082J
One Health Group PLC
14 December 2022
14 December 2022
One Health Group plc
("One Health" or "OHG" or the "Company")
Interim Results for the Six Months to 30 September 2022
One Health (AQSE: OHGR), a provider of NHS-funded medical
procedures, announces its unaudited interim results for the six
months ended 30 September 2022. Subsequent to the period end, on 24
November 2022 the Company was admitted to the Apex segment of the
AQSE Growth Market following a Placing of and Subscription for
ordinary shares at 150p per share.
Financial Highlights
-- Turnover of GBP9.83m (H1 2022: GBP8.39m), an increase of 17%
-- Gross profit increased 20% to GBP1.65m (H1 2022: GBP1.37m)
-- Underlying EBITDA of GBP0.51m (H1 prior year: GBP0.45m), an increase of 15%
-- Cash at bank as of 30 September 2022 GBP2.68m
-- Interim dividend declared of 1.66p per share, in line with
the Board's stated dividend policy
Operational Highlights
-- Surgical activity starting at two new independent hospitals
in new geographies, one more planned for Q4
-- Increased demand for Waiting List transfers with new
government initiatives through the NHS underway
-- New patient referrals were 11% above the level experienced in
H1 2019/20 (being the last year prior to the COVID-19 pandemic)
-- Attracted five new Surgical Consultants to the business to support growth.
Adam Binns, Chief Executive Officer, said :
"One Health performed well in the first six months of the
financial year with turnover up 17.2% to GBP9.83m and underlying
EBITDA up 15% to GBP0.51m . We have seen new patient referrals 11%
above the level experienced in the first half of the year to 31
March 2020, being the last year prior to the COVID-19 pandemic
.
"The Board has declared an interim dividend of 1.66p per share
to be paid on 13 January 2023 to shareholders on the register as at
close of business on 23 December 2022. Subject to the Company's
financial position and other financial obligations, the Directors
intend to declare an aggregate annual dividend of up to 50% of
annual profits after taxation in respect of each full financial
year.
"We are delighted to have joined AQSE and to see our shares
start trading on a public market. We have continued to invest in
the growth of the business and perform in line with the commentary
in our Admission document*. W e are confident in the future
prospects for One Health."
* ( https://www.onehealth.co.uk/investors )
For more information, please contact:
One Health Group plc via Square1 Consulting
Oberon Capital - AQSE Corporate Adviser and Broker +44 203 179 5300
Nick Lovering
Mike Seabrook
Adam Pollock
Square1 Consulting +44 207 929 5599
David Bick +44 7831 381201
About One Health Group
One Health engages over 100 NHS Consultants who sub-specialise
in the various surgeries offered by the Company, through a growing
network of community-based outreach clinics and surgical operating
locations. One Health provides services to over 10,000 new patients
every year, using surgeons and anaesthetists that are mostly
employed by the NHS, on a consultancy basis. It currently works
with over 100 professionals across 7 hospitals and approximately 30
CQC registered outreach clinics.
One Health's activities are focused on areas where the patient
needs are under-supplied by the local NHS service as well as
locations where population density is relatively high, and the
level of private medical insurance is relatively low. One Health
has also sought to expand geographically from its Head Office in
Sheffield into neighbouring counties, which meet the required
criteria. Currently, the Company's activities are focused in
Yorkshire, Lincolnshire, Derbyshire, Nottinghamshire and
Leicestershire. Revenue in the year to 31 March 2022 was derived
from 40 Clinical Commissioning Groups in addition to contracts
directly with NHS hospitals to help reduce internal waiting
lists.
One Health's business model has focused to date on four main
areas: being Spine, Orthopaedics, General Surgery and Gynaecology.
The split of inpatient procedures in the year to 31 March 2020 was
as follows: Spine 32% Orthopaedics 27% General Surgery 29%
Gynaecology 12%.
Spine and orthopaedics are particularly attractive areas for One
Health as the Directors believe that they benefit from powerful
growth drivers in terms of an ageing demographic, physical
inactivity and an increasing proportion of the population being
categorised as obese. Within orthopaedics, the most common
surgeries performed by One Health are knee and hip
replacements.
One Health delivered 4,870 procedures in the year to 31 March
2022 and the Directors expect the Company to deliver approximately
5,500 procedures in the year to 31 March 2023.
Consolidated Statement of Income and Retained Earnings
For the six months to 30 September 2022
6 months to 6 months to Year to
30 September 30 September 31 March 2022
2022 2021
GBP GBP GBP GBP GBP GBP
TURNOVER 9,831,204 8,388,055 17,515,441
Cost of Sales (8,184,746) (7,017,434) (13,935,050)
------------ ------------ -------------
GROSS PROFIT 1,646,458 1,370,621 3,580,391
Administrative Expenses (1,298,153) (996,503) (2,299,500)
Share option charge (119,487) (136,566) -
------------ ---------- ------------
Adjusted Administrative
Expenses (1,417,640) (1,133,069) (2,299,500)
Other operating income 47,571 28,931 75,891
------------ ------------ -------------
OPERATING PROFIT 276,389 266,483 1,356,782
Loss from fixed asset
investments - - (38,949)
Interest receivable and
similar income 3,317 98 452
------------ ---------- ------------
3,317 98 (38,497)
Interest payable and similar
expenses (23,848) (12,204) 71,435
------------ ------------ -------------
PROFIT BEFORE TAXATION 255,859 254,377 1,389,720
Tax on profit (46,616) (9,952) (229,702)
------------ ------------ -------------
PROFIT FOR THE FINANCIAL
PERIOD 209,242 244,426 1,160,018
============ ============ =============
Profit attributable to
owners of the parent 209,242 244,426 1,160,018
Underlying EBITDA* 510,211 445,336 1,376,089
Retained earnings at beginning
of period 5,012,465 3,852,448 3,852,448
Profit attributable to
owners of the parent 209,242 244,425 1,160,018
Dividends (560,280) - -
RETAINED EARNINGS OF
THE GROUP 4,661,427 4,096,873 5,012,466
============ ============ =============
Earnings per share
Underlying* 5.10p 4.45p 13.76p
Basic 2.09p 2.44p 11.60p
Diluted 2.09p 2.44p 11.60p
* Excludes costs relating to IPO and share options
Consolidated Statement of Financial Position
As at 30 September 2022
As at As at As at
30 September 2022 30 September 2021 31 March 2022
GBP GBP GBP GBP GBP GBP
FIXED ASSETS
Tangible Assets 1,109,100 889,023 1,116,289
Investment Property 1,861,905 1,861,905 1,861,905
------------ ------------ ------------
2,971,005 2,750,928 2,978,194
CURRENT ASSETS
Debtors 5,842,346 3,629,127 4,177,462
Cash at bank and at hand 2,683,143 2,837,531 3,684,980
---------- ---------- ----------
8,525,489 6,466,658 7,862,442
Amounts falling due within one
year 5,260,976 3,751,838 4,322,467
---------- ---------- ----------
NET CURRENT ASSETS 3,264,513 2,714,820 3,539,975
TOTAL ASSETS LESS CURRENT
LIABILITIES 6,235,518 5,465,748 6,518,169
Amounts due after more than one
year (1,059,031) (1,227,600) (1,085,431)
Provisions for liabilities 2,935 32,152 (21,764)
------------ ------------ ------------
NET ASSETS 5,179,422 4,270,300 5,410,974
============ ============ ============
CAPITAL AND RESERVES
Called up share capital 10,000 10,000 10,000
Revaluation reserve 83,215 - 83,215
Share option reserve 424,780 163,427 305,293
Retained earnings 4,661,427 4,096,873 5,012,466
------------ ------------ ------------
SHAREHOLDERS' FUNDS 5,179,422 4,270,300 5,410,974
============ ============ ============
Consolidated Cashflow Statement
For the six months to 30 September 2022
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March 2022
GBP GBP GBP
Cash flows from operating activities
Cash generated from operations (375,482) 2,383,390 3,533,784
Interest paid (23,848) (12,204) 71,435
------------------- ------------------- ---------------
Net cash from operating activities (399,330) 2,371,086 3,605,219
Cash flows from investing activities
Purchase of tangible fixed assets (19,144) (499,144) (753,518)
Purchase of investment property - (999,660) (999,660)
Sale of tangible fixed assets - - (1,387)
Interest received 3,317 98 452
Rental income profit/loss - (28,931) (38,949)
------------------- ------------------- ---------------
Net cash from investing activities (15,827) (1,527,637) (1,793,062)
Cash flows from financing activities
New loans in year - 307,850 307,850
Loan repayments in year (26,400) (19,800) (39,600)
Accrued loan interest - - (101,459)
Equity dividends paid (560,280) - -
------------------- ------------------- ---------------
Net cash from financing activities (586,680) 288,050 166,791
=================== =================== ===============
(Decrease)/increase in cash and cash equivalents during
the period (1,001,837) 1,131,499 1,978,948
Cash and cash equivalents at beginning of period 3,684,980 1,706,032 1,706,032
Cash and cash equivalents at end of period 2,683,143 2,837,531 3,684,980
One Health Group plc
Notes to the Interim Results
for the Period 1 April 2022 to 30 September 2022
1. STATUTORY INFORMATION
One Health is a public company, limited by shares, registered in
England and Wales. The company's registered number is 04201068 and
registered office address is 131 Psalter Lane, Sheffield, South
Yorks, S11 8UX.
The Interim Results have been reviewed, not audited, and were
approved by the Board of Directors on 13(th) December 2022.
2. ACCOUNTING POLICIES
Basis of preparing the Interim Results
These Interim Results have been prepared in accordance with
Financial Reporting Standard 102 "The Financial Reporting Standard
applicable in the UK and Republic of Ireland" and the Companies Act
2006. The Interim Results have been prepared under the historical
cost convention as modified by the revaluation of certain
assets.
The Interim Results have been prepared on a going concern basis.
The Directors have reviewed and considered relevant information,
including the annual budget and future cash flows in making their
assessment. The Directors have tested their cash flow analysis to
take into account the impact on their business of possible
scenarios, alongside the measures that they can take to mitigate
the impact of possible scenarios. Based on these assessments, given
the measures that could be undertaken to mitigate the current
adverse conditions, and the current resources available, the
Directors have concluded that they can continue to adopt the going
concern basis in preparing the annual report and accounts.
The accounts are presented in Sterling currency and rounded to
the nearest pound.
Financial Reporting Standard 102 - reduced disclosure
exemptions
The group has taken advantage of the exemption from disclosing
the company key management personnel compensation, as required by
FRS 102 paragraph 33.7.
Basis of consolidation
The Interim Results include the interim financial information of
the company and all of its subsidiary undertakings, together with
the group's share of the results of associates made up to 30
September.
A subsidiary is an entity controlled by the group. Control is
the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities. Where the
group owns less than 50% of the voting powers of an entity but
controls the entity by virtue of an agreement with other investors
which give it control of the financial and operating policies of
the entity, it accounts for that entity as a subsidiary.
Where a subsidiary has different accounting policies to the
group, adjustments are made to those subsidiary financial
statements to apply the group's accounting policies when preparing
the consolidated Interim Results.
Any subsidiary undertakings or associates sold or acquired
during the year are included up to, or from, the dates of change of
control or change of significant influence respectively.
All intra-group transactions, balances, income, and expenses are
eliminated on consolidation. Adjustments are made to eliminate the
profit or loss arising on transactions with associates to the
extent of the group's interest in the entity.
2. ACCOUNTING POLICIES - continued
Significant judgements and estimates
In preparing the Interim Results it is necessary to make certain
judgements, estimates and assumptions that affect the amounts
recognised in the financial information presented in the Interim
Results. These assumptions are reassessed annually as part of the
interim and year end accounts preparation process.
The critical judgments that the directors have made in the
process of applying the Group's accounting policies that have the
most significant effect on the Interim Results are discussed
below.
(I) Assessing indicators of impairment
In assessing whether there have been any indicators of
impairment assets, the directors have considered both external and
internal sources of information such as market conditions,
counterparty credit ratings and experience of recoverability. There
have been no indicators of impairments identified during the
current financial year.
Key sources of estimation uncertainty
(i) Determining useful economic lives of tangible fixed
assets
The Group depreciates tangible fixed assets over their estimated
useful lives. The estimation of the useful lives of assets is based
on historic performance as well as expectations about future use
and therefore requires estimates and assumptions to be applied by
management. The actual lives of these assets can vary depending on
variety of factors, including technological innovation, product
life cycles and maintenance programmes.
The judgment is applied by management when determining the
residual values for tangible fixed assets. When determining the
residual value management aim to assess the amount that the Group
would currently obtain for the disposal of the asset, if it were
already of the condition expected at the end of its useful life.
Where possible this is done with reference to external market
prices.
(ii) Recoverability of debtors
The Group establishes a provision for debtors that are estimated
not to be recoverable. When assessing recoverability, the directors
have considered factors such as the ageing of debtors, past
experience of recoverability and the credit profile of individual
or groups of customers.
Turnover
Turnover is measured at the fair value of the consideration
received or receivable, excluding discounts, rebates, value added
tax and other sales taxes.
Turnover consists of the provision of medical and clinical
services, sale of medical implants, and recharge of direct costs
incurred. All turnover is generated in the United Kingdom.
Dividend income is recognised when the right to receive payment
is established.
Tangible fixed assets
Tangible assets are started at cost less accumulated
depreciation and accumulated impairment losses. Depreciation on
other assets is provided at the following annual rates in order to
write off the cost less estimated residual value of each asset over
its estimated useful life.
Freehold property 2% straight line
Long leasehold in accordance with the
property
Plant and machinery 15% straight line
Fixtures and fittings 20% straight line
Computer equipment 25% straight line
2. ACCOUNTING POLICIES - continued
The assets' residual values. useful lives and depreciation
methods are reviewed, if appropriate at the end of each reporting
period. The effect of any change is accounted for
prospectively.
Investment property
Investment property is shown at most recent valuation. Any
aggregate surplus or deficit arising from changes in fair value is
recognised in the Statement of Income and Retained Earnings.
Investment in a subsidiary company
Investment in subsidiary company is held at cost less
accumulated impairment losses.
Financial instruments
The Group has elected to apply the provisions of Section 11
'Basic Financial Instruments' and Section 12 'Other Financial
Instruments Issues' of FRS 102 to all of its financial
instruments.
Basic financial assets, including trade and other receivables,
cash and bank balances and investments in commercial paper, are
initially recognised at transaction price, unless the arrangement
constitutes a financing transaction, where the transaction is
measured at the present value of the future receipts discounted at
a market rate of interest. Such assets are subsequently carried at
amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at
amortised cost are assessed for objective evidence of impairment.
If an asset is impaired the impairment loss is the difference
between the carrying amount and the present value of the estimated
cash flows discounted at the asset's original effective interest
rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an
event occurring after the impairment was recognised, the impairment
is reversed. The reversal is such that the current carrying amount
does not exceed what the carrying amount would have been had the
impairment not previously been recognised. The impairment reversal
is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual
rights to the cash flows from the asset expire or are settled or
(b) substantially all the risks and rewards of the ownership of the
asset are transferred to another party or (c) control of the asset
has been transferred to another party who has the practical ability
to unilaterally sell the asset to an unrelated third party without
imposing additional restrictions.
Basic financial liabilities, including trade and other payables,
bank loans, loans from fellow group companies and preference shares
that are classified as debt, are initially recognised at
transaction price, unless the arrangement constitutes a financing
transaction, where the debt instrument is measured at the present
value of the future receipts discounted at a market rate of
interest. Debt instruments are subsequently carried at amortised
cost, using the effective interest rate method.
Fees paid on the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this case,
the fee is deferred until the draw-down occurs. To the extent there
is no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a pre-payment for
liquidity services and amortised over the period of the facility to
which it relates.
Trade payables are obligations to pay for goods or services that
have been acquired in the ordinary course of business from
suppliers. Accounts payable are classified as current liabilities
if payment is due within one year or less. If not, they are
presented as non-current liabilities. Trade payables are recognised
initially at transaction price and subsequently measured at
amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is
extinguished, that is when the contractual obligation is
discharged, cancelled or expires.
2. ACCOUNTING POLICIES - continued
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at
call with banks, other short-term highly liquid investments with
original maturities of three months or less and bank overdrafts.
Bank overdrafts are shown within borrowings in current
liabilities.
Distributions to equity holders
Dividends and other distributions to the company's shareholders
are recognised as a liability in the Interim Results in the period
in which the dividends and other distributions are approved by the
company's shareholders. These amounts are recognised in the
statement of changes in equity.
Related party transactions
The Group discloses transactions with related parties which are
not wholly owned with the same group. It does not disclose
transactions with its parent or with members of the same group that
are wholly owned.
Taxation
Taxation for the period comprises current and deferred tax. Tax
is recognised in the Consolidated Income Statement, except to the
extent that it relates to items recognised in other comprehensive
income or directly in equity.
Current or deferred taxation assets and liabilities are not
discounted.
Current tax is recognised at the amount of tax payable using the
tax rates and laws that have been enacted or substantively enacted
by the statement of financial position date.
Deferred tax
Deferred tax is recognised in respect of all timing differences
that have originated but not reversed at the statement of financial
position date.
Timing differences arise from the inclusion of income and
expenses in tax assessments in periods different from those in
which they are recognised in the Interim Results. Deferred tax is
measured using tax rates and laws that have been enacted or
substantively enacted by the period end and that are expected to
apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are
recognised only to the extent that it is probable that they will be
recovered against the reversal of deferred tax liabilities or other
future taxable profits.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement
of Income and Retained Earnings on a straight line basis over the
period of the lease.
Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme.
Contributions payable to the group's pension scheme are charged to
the Statement of Income and Retained Earnings in the period to
which they relate.
Employee benefits
The group provides a range of benefits to employees, including
annual bonus arrangements, paid holiday arrangements and defined
benefit and defined contribution pension plans.
Short term benefits, including holiday pay and other similar
non-monetary benefits, are recognised as an expense in the period
in which the service is received.
2. ACCOUNTING POLICIES - continued
The group operates a number of country-specific defined
contribution plans for its employees. A defined contribution plan
is a pension plan under which the group pays fixed contributions
into a separate entity. Once the contributions have been paid the
group has no further payment obligations. The contributions are
recognised as an expense when they are due. Amounts not paid are
shown in accruals in the balance sheet. The assets of the plan are
held separately from the group in independently administered
funds.
The group operates a number of annual bonus plans for employees.
An expense is recognised in the profit and loss account when the
group has a legal or constructive obligation to make payments under
the plans as a result of past events and a reliable estimate of the
obligation can be made.
The group provides share-based payment arrangements to certain
employees. Equity-settled arrangements are measured at fair value
(excluding the effect of non- market based vesting conditions) at
the date of the grant. The fair value is expensed on a
straight-line basis over the vesting period. The amount recognised
as an expense is adjusted to reflect the actual number of shares or
options that will vest.
Where equity-settled arrangements are modified, and are of
benefit to the employee, the incremental fair value is recognised
over the period from the date of modification to date of vesting.
Where a modification is not beneficial to the employee there is no
change to the charge for share-based payment. Settlements and
cancellations are treated as an acceleration of vesting and the
unvested amount is recognised immediately in the income
statement.
3. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted
average number of shares adjusted to assume the conversion of all
dilutive potential ordinary shares.
Underlying EPS is calculated using underling EBITDA, which
excludes costs relating to the IPO and share adjustments.
30 September 2022 Earnings Weighted Per-share
average amount
number of
shares
GBP Pence
Basic EPS
Earnings attributable to ordinary
shareholders 209,243 10,000,000 2.09
Effect of dilutive securities - - -
Diluted EPS
Adjusted earnings 209,243 10,000,000 2.09
Underlying EPS
Adjusted earnings 510,211 10,000,000 5.10
3. EARNINGS PER SHARE - continued
30 September 2021 Earnings Weighted Per-share
average amount
number of
shares
GBP Pence
Basic EPS
Earnings attributable to ordinary
shareholders 244,426 10,000,000 2.44
Effect of dilutive securities - - -
Diluted EPS
Adjusted earnings 244,426 10,000,000 2.44
Underlying EPS
Adjusted earnings 445,336 10,000,000 4.45
31 March 2022 Earnings Weighted Per-share
average amount
number of
shares
GBP Pence
Basic EPS
Earnings attributable to ordinary
shareholders 1,160,018 10,000,000 11.60
Effect of dilutive securities - - -
Diluted EPS
Adjusted earnings 1,160,018 10,000,000 11.60
Underlying EPS
Adjusted earnings 1,376,089 10,000,000 13.76
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